Question
Download Solution PDFMatch List I with List II.
List I (Consequent outcome) |
List II (Taxation Perspective ) |
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A. |
The person is liable to penalty and prosecution |
I. |
Tax management |
B. |
Tax गs reduced by taking advantage of loopholes in the law |
II. |
Tax Avoidance |
C. |
The main aim is compliance with legal formalities |
III. |
Tax Evasion |
D. |
It is a guide for decision-making |
IV. |
Tax planning |
Choose the correct answer from the options given below:
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFThe correct answer is A - III, B - II, C - I, D - IV
Key Points
List I (Consequent outcome) | List II (Taxation Perspective ) |
Tax Evasion |
Tax evasion is an unlawful practice involving the deliberate attempt to avoid paying the actual tax liability. Individuals or businesses commit tax evasion by furnishing false information about their income, profits, or gains to the tax authorities. This can be done in numerous ways, including deliberately under-reporting or omitting income, overstating deductions or credits, keeping two sets of books, or making false entries in books and records. Here are several important points about tax evasion:
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Tax management | Tax management refers to the process by which taxes are managed for an individual or a company in a manner that is compliant with all relevant tax laws and regulations. It involves efforts to minimize a taxpayer's tax liabilities while making sure all legal obligations are met.
Here are a few important points about tax management:
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Tax Avoidance | Tax avoidance refers to the lawful practice of seeking to minimize one's tax liability. It involves utilizing all the benefits, deductions, rebates, and exemptions provided in tax laws to reduce the overall tax burden. The premise of tax avoidance is to take advantage of the provisions of the tax laws in a manner that's legally permissible.
Here are some important points about tax avoidance:
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Tax planning |
Tax planning refers to the process of studying, analyzing, and interpreting various tax laws to align financial goals with tax efficiency. Effectively, it allows individuals or businesses to minimize their tax liability while complying with the tax regulations. Here are some tax planning strategies:
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Last updated on Jun 6, 2025
-> The UGC NET Exam Schedule 2025 for June has been released on its official website.
-> The UGC NET Application Correction Window 2025 is available from 14th May to 15th May 2025.
-> The UGC NET 2025 online application form submission closed on 12th May 2025.
-> The June 2025 Exam will be conducted from 21st June to 30th June 2025
-> The UGC-NET exam takes place for 85 subjects, to determine the eligibility for 'Junior Research Fellowship’ and ‘Assistant Professor’ posts, as well as for PhD. admissions.
-> The exam is conducted bi-annually - in June and December cycles.
-> The exam comprises two papers - Paper I and Paper II. Paper I consists of 50 questions and Paper II consists of 100 questions.
-> The candidates who are preparing for the exam can check the UGC NET Previous Year Papers and UGC NET Test Series to boost their preparations.